Banking scams are becoming increasingly common, with older adults often falling victim. In 2023, scams were responsible for $3.4 billion in losses among those 60 and older — twice the amount of financial loss as any other age group.

Older adults tend to have more money than younger people, making them more attractive targets when it comes to fraud. Unfortunately, this age group may also be less technologically savvy, making them more vulnerable too.

With fraud losses growing by the year — increasing by 14% from 2022 to 2023 — it’s even more important to protect aging parents from scams. Continue reading to find out what you should know about banking scams targeting the elderly and what you can do to help.

Common banking scams that target the elderly

With the increasing prevalence of scams in recent years, it may feel hard to keep up. But knowing what scams are out there can help you and your elderly parents avoid them. Here are some common banking scams you and your aging parents should be aware of:

Grandparent scam

This scam preys on the elderly’s relationship with their grandkids. Scammers may call pretending to be a grandchild, asking for money, or pose as someone trying to help the grandchild. In both cases, the scammer will attempt to get the grandparent to send cash right away.

Tech support scam

Some older people aren’t as familiar with technology as their kids and grandkids, and this scam takes advantage of this knowledge gap.

In a tech support scam, a scammer programs a pop-up or message to appear on the fraud victim’s computer, providing a phone number to call for help. After the fraud victim calls the number, the scammer may request remote access to the device to help fix the “problem,” which can give the scammer access to secure information.

Sweepstakes, awards, and lottery scams

In these scams, fraudsters contact an elderly person, telling them they’ve won some type of award. The scammer will then request payment in some form to cover “fees” or “taxes” associated with their winnings — but the prize money never arrives.

Government impersonation scam

In a government impersonation scam, a fraudster may pose as a government employee, such as a representative from the IRS or Medicare. They’ll then demand payment or sensitive account information, threatening either legal action or elimination of benefits if the victim doesn’t comply.

Fake check scam

There are several types of fake check scams, but many involve sending a forged check and requesting some sort of payment in return. For example, a scammer may send a fake check for more than they claim they owe. They’ll then request that the recipient pay back the difference before the check bounces.

Bank account and credit card scams

Scammers may call or email older adults pretending to be a representative from their bank or credit card company. They might pretend they’re investigating fraud or an issue with an account. The scammer will then ask for personal information on the pretense of helping, gaining access to financial accounts in the process.

How to prevent your parent from falling victim to banking scams

Unfortunately, scammers are smart, and their schemes are only getting more elaborate. But that doesn’t mean your elderly parents can’t protect themselves, their identity, and their bank accounts. Use the following tips to help your aging parents avoid falling victim to fraud:

• Make sure they’re informed: While your elderly parent may not be able to keep up with every scam that’s out there, knowing about some of the common elderly scams may help them identify fraud before it’s too late. Resources like the AARP Fraud Watch Network can alert them of the latest schemes with a free biweekly email newsletter.

• Set up account alerts: While your elderly parents may not do all of their banking online, taking advantage of bank alerts is an easy way to help them spot suspicious activity. Help them set up bank notifications and fraud alerts so they immediately know about any unauthorized charges.

• Help them freeze their credit: A credit freeze prevents creditors from running a credit check and can also be helpful in preventing fraud. If a scammer steals an elderly person’s information and attempts to open a new credit account in their name, the creditor wouldn’t be able to approve the new account if the person’s credit is frozen. You can help your parents freeze their credit online through the three major credit reporting agencies’ websites: Experian, Equifax, and TransUnion.

• Use spam filters: Spam filters can help limit fraudsters from reaching your parents via email. Many email providers have existing filters, but you can also help your parents label unwanted messages as spam to make sure they don’t receive further communication from suspicious senders.

• Help them learn to recognize a scam: There seem to be new scams every day, but many of these scams have the same red flags to look out for. Make sure your parents are aware of common scammer tactics, which include urging you to act fast, threatening you, pressuring you to share personal information, and making unsolicited contact.

What to do if your elderly parent is being scammed

Banking scams can be devastating — both financially and emotionally. It’s not uncommon for fraud victims to want to keep the situation to themselves, but reporting a scam can help victims get support and prevent the same thing from happening to others.

Let your parents know they shouldn’t feel ashamed of being scammed and that you’re happy to help if they ever find themselves the victims of fraud.

Below are the steps you and your elderly parents should take if they fall victim to banking fraud:

1. Alert financial institutions and change passwords: Help your parents call their bank and credit card companies to alert them of potential fraud. Point out any unauthorized charges on the accounts. Then change the passwords for any sensitive accounts and make sure to turn on two-factor authentication.

2. Record the details: Keeping records of any details related to a scam is helpful for law enforcement officials investigating the fraud. Help your parents collect and record any communication with fraudsters, dates of contact, methods of contact, payment amount and destination, and any other details related to the fraud.

3. Report the fraud: First, you can help your elderly parents report the scam to the local police department. If the scam occurred online, you can file a complaint with the FBI’s Internet Crime Complaint Center (IC3). You can also report banking scams to the Federal Trade Commission and the AARP Fraud Watch Network Helpline.